SNAP Benefits More Than Familes; Retailers Depend On The Income

June 9, 2025 – The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, plays a crucial role in supporting food retailers and driving revenue, particularly among grocery stores and major discount chains. Retailers like Walmart, Kroger, Dollar General, and Aldi see significant portions of their sales coming from SNAP participants. These shoppers are a reliable customer base, contributing to both in-store and online food and beverage sales.

SNAP has a substantial impact on the grocery industry’s overall financial health. According to Supermarket News, SNAP benefits made up about 13.5% of grocery industry sales in 2022, with a slight decline to approximately 9.5% in 2023. These percentages highlight SNAP’s influence on the market, particularly for stores located in low-income communities.

Spending patterns among SNAP participants reveal that most benefits are used quickly after issuance, creating a fast and steady revenue stream for retailers. The majority of SNAP spending occurs at grocery stores, though mass retailers and convenience stores also benefit. This spending not only supports the retail sector but also stimulates broader economic activity. The USDA estimates that every $1 billion increase in SNAP benefits results in a $1.54 billion boost to the national GDP, showing the program’s wider economic significance.

Retailers receive SNAP payments through Electronic Benefit Transfer (EBT) cards, which work similarly to debit transactions, providing quick and secure payments. In times of high inflation, SNAP benefits are especially vital. The government adjusts benefit levels to account for rising food costs, ensuring that families can maintain access to essential groceries. Through both direct sales and broader economic contributions, SNAP continues to be an essential component of the U.S. food system and economy, supporting millions of families and strengthening retailer revenue across the country.